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Save Money While Paying Off Debt with These Tips

Save Money While Paying Off Debt with These Tips


Save Money While Paying Off Debt with These Tips

Paying off debt is good advice if you want to buy a house. So is saving for a down payment. The question is, which one is most important? Many times, the answer is both.

High debt loads can cause you to need a costly mortgage bad credit loan, while a paltry down payment can knock you out of getting approved for a mortgage altogether.

You may think, “How can I save and pay down my debt at the same time?” Well, it’s not easy, but it’s also not impossible.

Here are some helpful tips for saving money AND paying off debt at the same time.

Pinpoint Defined Goals

Add up your debt load and look at your savings account. Then go to a lender’s website and use their calculators to see how much of a down payment you’ll need. Write the amount you need to pay down debt and the amount you need to save for a down payment. This is your goal.

Cut Out Unnecessary Expenses

Now tackle your budget. Write down where you spend your money, and start crossing stuff off the list. Are there items you pay for and don’t use, like a gym membership? Get rid of them and move those payments to your “pay off debt” line item. Then start chopping monthly plans like cell phones and cable. Finally, reduce the amount you spend eating out, buying new clothes, going to concerts, and vacationing. Put all of that money into your “pay off debt” list.

Make Saving Easy

Set your bank account to transfer a set sum to your savings account every paycheck. That way you don’t have to remember to do it, and you won’t have a chance to spend it.

Increase Your Income

Adding more monthly income is one of the easiest ways to pay down debt and ramp up your savings. Get a weekend job, mow yards, babysit, dog-sit, house-sit, freelance, or find another way to add to your income. Stash every dollar of extra money in savings or pay it on your debt.

Have a Yard Sale

Get rid of clutter and make some fast cash with a yard sale. Put up big signs, advertise on social media, and watch the stuff you no longer wear or use disappear. Take your proceeds straight to the bank and put in savings.

Use Coupons

Store coupons are easy to use. Just download the app, clip the coupons, and scan your smart device at checkout. If you get in the habit of doing this, you can save on all kinds of necessities. Once you check out, immediately transfer your savings to your down payment fund.

Debt Free = Faster Savings

Once you get your debt paid off, double down on saving with the money previously earmarked for your monthly payments.

Saving for a down payment and paying off debt at the same time takes discipline and determination. If you feel yourself falter, remind yourself your end goal is buying a home and that the sacrifice is worth it.

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020